Iceland uses right-hand traffic

Iceland drives on the right side of the road. If you are used to driving on the left in the UK, Australia, or Japan, you will need to adjust. Your rental car's steering wheel will be on the left side of the vehicle, and you will pass other cars on the left.

This matters most at roundabouts, where traffic moves clockwise instead of counterclockwise. It also changes how you judge distance when pulling into traffic or passing — your reference points shift. Most visitors adapt within the first hour of driving, but the first few minutes feel disorienting if you have spent years on the left side.

Key Takeaways

  • Iceland's traffic keeps to the right, with the steering wheel on the left side of the car.
  • Roundabouts move clockwise, and you yield to traffic already in the circle.
  • Passing happens on the left, and oncoming traffic approaches from your right.
  • Road signs and lane markings follow the same conventions as mainland Europe and North America.
  • An International Driving Permit is not required by Icelandic law, but your home country's license plus a passport is standard.

How roundabouts work in Iceland

Icelandic roundabouts move clockwise. You enter from the right, yield to any traffic already circling, and exit to your left. If you are coming from a left-side driving country, this reverses your instinct — you will be looking for traffic on the opposite side of the road.

Most roundabouts in Reykjavik and other towns are small and move slowly. Larger roundabouts on Route 1 (the Ring Road) are faster. The rule is the same everywhere: yield to traffic in the circle, signal your exit, and do not stop once you are inside unless traffic forces you to.

Passing and lane discipline

Passing happens on the left, as it does in most of Europe. Do not pass on the right. On two-lane roads, check your left mirror and blind spot before moving left, signal, and return to the right lane once you have cleared the other vehicle by a safe distance.

Iceland's roads are often narrow, especially in rural areas and on the Ring Road's less-travelled sections. Passing windows are short. Many drivers use a quick flash of headlights to signal that the road ahead is clear, but do not assume this is an invitation — it is a courtesy, not a rule. If you cannot see clearly ahead, do not pass.

What your license and documents need to be

Your home country's driver's license is valid in Iceland. You do not need an International Driving Permit by Icelandic law, though some car rental companies request one. Bring your passport and your original license card — not a photocopy. If your license is not in Latin characters (for example, if it is in Cyrillic or Arabic), an International Driving Permit becomes useful because police and rental staff can read it.

Your license must be valid for the category of vehicle you are renting. If you hold a standard car license, you can rent a regular sedan or SUV. If you want to rent a larger truck or van, check the weight and axle limits on your license before booking.

Speed limits and road signs

Speed limits in Iceland are posted in kilometres per hour. The national limit on open roads is 90 km/h (about 56 mph). In towns and villages, limits drop to 50 km/h or lower. On gravel roads, the limit is usually 80 km/h, but conditions often demand slower speeds.

Road signs follow European conventions. A white rectangle with red border means prohibition (no entry, no passing, speed limit). A blue circle with a white symbol means instruction (keep right, turn left). Yellow diamond signs warn of hazards ahead. Unlike some countries, Iceland does not use speed cameras on most roads, but police do conduct traffic stops, and fines for speeding are steep.

Driving in winter and on gravel roads

Winter driving in Iceland requires different handling than summer. Snow and ice are common from November through March, especially in the north and highlands. Your rental car should have winter tyres and be equipped for the season — check with the rental company about what is included.

Gravel roads are common on the Ring Road and in rural areas. Gravel changes how your car handles: braking distance increases, steering is less responsive, and loose stones can damage windshields or undercarriage. Slow down on gravel, increase your following distance, and avoid sudden braking. If you hit a stone and damage your rental car, you may be charged for repairs — ask the rental company about gravel road coverage before you drive.

Common driving differences from left-side countries

If you drive on the left at home, these shifts will feel strange at first. Your instinct to look right before pulling into traffic will be backwards — you will need to look left. Parking on the right side of the street means your passenger door opens into traffic instead of the pavement. Petrol stations and car parks are laid out for right-hand traffic, so the flow of vehicles will feel reversed.

The most common mistake is drifting left on empty roads, especially at night or in bad weather. Your muscle memory pulls you toward the left side of the road. Set your GPS, keep your eyes on the centre line, and remind yourself aloud if you need to: "Keep right." Most visitors stop noticing the difference after two or three days of driving.

Frequently Asked Questions

Do I need an International Driving Permit to rent a car in Iceland?

Icelandic law does not require one, but some rental companies ask for it as proof of translation. If your home license is in Latin characters and valid, most companies will accept it alone. Check with your rental company before you book. If your license uses non-Latin script, an International Driving Permit makes communication with police or rental staff easier.

What happens if I accidentally drive on the left side of the road?

You will meet oncoming traffic very quickly. Pull right when ready and safely. Police may stop you if they see it, but a single mistake is usually treated as confusion rather than recklessness. If you feel unsafe or disoriented, pull over, rest, and reorient yourself before continuing.

Are there toll roads in Iceland?

No. Iceland has no toll roads or motorway fees. You pay for petrol, parking, and car rental, but not for road use. Some tunnels in the north and south are free to use.

What should I do if I get a speeding ticket in Iceland?

Pay it. Fines are issued on the spot or by mail to your rental company, which will charge your credit card. Disputing a ticket from abroad is difficult. Speeds are enforced, especially in towns and on the Ring Road near populated areas.

Can I drive a rental car on F-roads (mountain roads)?

Most standard rental cars are not permitted on F-roads. These are rough mountain routes open only in summer and require high-clearance or four-wheel-drive vehicles. Check your rental agreement — it will specify which roads are covered. If you want to explore F-roads, book a vehicle rated for them and confirm coverage with the rental company.